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Profit margin and markup calculator

Pick the two numbers you know, cost and price or a cost and the margin you want, and get the rest.

What do you know?

Cost ($)

Price ($)

Margin (%)

40%

Markup (%): 66.67%
Cost ($): $60.00
Price ($): $100.00
Profit: $40.00

Margin is profit divided by price. Markup is profit divided by cost. A 50% markup is a 33.3% margin.

IN SHORT

Profit margin is profit divided by the selling price. Markup is profit divided by the cost. If something costs $60 and sells for $100, the profit is $40, the margin is 40 percent and the markup is 66.7 percent. To price for a target margin, divide the cost by one minus the margin: $60 / (1 - 0.40) = $100. The calculator solves any pair.

Prices and limits as of October 26, 2026.

Questions

What's the difference between margin and markup?

Both use the same profit. Margin divides it by the price, markup divides it by the cost. That's why a 50% markup is only a 33.3% margin, and a 50% margin needs a 100% markup.

How do I price for a target margin?

Price = cost / (1 - margin). For a 30% margin on a $140 cost: 140 / 0.70 = $200.

How do I convert markup to margin?

Margin = markup / (1 + markup). A 25% markup is 0.25 / 1.25 = 20% margin. Going the other way, markup = margin / (1 - margin).

What should I count as cost for a service?

Direct costs of delivering the job: subcontractors, software bought for it, materials and travel. If you include your own time at an hourly cost, the margin shows profit above paying yourself.

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